The Study of Effective Factores on Pressure of Exchange Market in Developing and Developed Countries : Panel Quantile Approach

The financial crisis is one of the most important challenges facing many countries so far. One of the most important consequences of the financial crisis is the currency crisis, which creates pressure on the currency market. The purpose of this paper is to examine the pressure of exchange market among developing and developed countries that were affected of global financial crisis (2007-2009). By using quantile regression, The effect of internal factors on the pressure exchange market in these countries was examined in three periods: the pre-crisis period 2000-2006, in the crisis conditions of 2007-2009 and the post-crisis period 2010-2017. The results of the study show that the financial crisis can make difficult for both groups of developing and developed countries. in such sensitive conditions that the slightest change and fluctuation in the exchange rate causes increases or decreases the pressure on the currency market through impact on the mentioned variables. Therefore, in this situation, a level of intervention is needed to achieve the target exchange rate and to avoid pressure on the currency market. The results also showed that both groups of countries are sensitive to the crisis conditions which can affect the currency market pressure. Overall, the results of this study demonstrate the importance of applying policy. For developing countries, the increase in domestic credit and capital flows during the financial crisis and post-crisis period reveals the impact of monetary policy on currency market pressure. Therefore, after the crisis, developing countries are more exposed to currency market pressure than developed countries because variables such as domestic credit and capital flows that represent government monetary policy, have positive effect and increase the pressure on the currency market.